Management Accounting CIA

Name

Reg No?

Sales= Rs.500000, Variable Cost= Rs.200000, Fixed Cost= Rs.50000. What is the BEP Sales?

• 83333

• 125000

• 500000

• 300000

The formula for Margin of Safety is?

• Profit/PV Ratio

• Fixed Cost/PV Ratio

• BEP/PV Ratio

• None of the above

100 hours of skilled labour are required for the job. The Idle time for current labour force is 70 hours. The per hour rate is Rs.25/-. What is the relevant labour cost?

• 2500

• 750

• 1750

• 1250

The total profit at Break even point is

• The maximum company can ever attain

• The minimum company can every attain

• NIL

• Negative

The variable cost to make 1 unit of Product A is Rs.20 and purchase price for 2 units is Rs.30/-. Should the product be bought or made?

• Make

• Buy

• Indifferent

Available Machine Hours are 2000 hours. Product A,B and C gives contribution of Rs.2,6 and 4 per MH respectively. Rank them in preference of production.

• B,C,A

• A,C,B

• B,A,C

• C,A,B

Unskilled 12000 hours required for a new contract. Current Workforce is fully utilised.Rate per hour is Rs.2.What is relevant labour cost?

• nil

• 24000

• 6000

• 12000

250 kgs of Raw Material is required for a new project. 150 kgs are already in stock with no other use. If not used in this project, it will be sold as scrap for Rs.10 per kg. Current Market Price is Rs.11. What is the relevant material cost?

• 1500

• 2600

• 1100

• 2750